Indian Aviation Outlook 'Negative' Amid Geopolitical Tensions, Rising Costs: ICRA

• ICRA revises Indian aviation industry outlook to 'negative' from 'stable' due to West Asia geopolitical tensions.
• Sharp rupee depreciation and expected jet fuel price hikes will significantly increase airline operating costs.
• Domestic air passenger traffic growth projected at 0-3% and international at 7-9% for current fiscal year, indicating weak demand.
• Flight cancellations, higher airfares, and rerouting due to airspace closures to impact passenger traffic and increase costs.
• Industry net losses expected to be Rs 17,000-18,000 crore for FY26, with downward bias on earlier FY27 estimates.